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Microeconomics

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Behavior and Mixed Strategies

MICRO-JVZN1S

Player 1 will play Left with a 2/3 probability and Right with probability 1/3. After that, he will choose again between Left and Right with the probabilities of the diagram below.

Which of the following mixed strategies corresponds to the behavior strategies from the diagram?

Created for Albert.io. Copyright 2016. All rights reserved. Created for Albert.io by Christian Alcocer.

A

(L,L) with 2/3 probability, (L,R) with 1/3 probability, (R,L) with 0 probability and (R,R) with 0 probability.

B

(L,L) with 1/2 probability, (L,R) with 1/2 probability, (R,L) with 0 probability and (R,R) with 0 probability.

C

(L,L) with 1/6 probability, (L,R) with 1/3 probability, (R,L) with 1/2 probability and (R,R) with 0 probability.

D

(L,L), (L,R) and (R,L) with 1/3 probability.